Includes notes payable, long-term debt, preferred stocks, and common stocks.
Determinination of External Funding
If the difference between projected total assets is great than projected Total Liabilities and Equity, the organization will need external dunding, if not it will have excess funding
% of Sales Method
It is used as a short-cut method for creating proforma income statements and then balance sheets. It is a simple method that uses % of sales of historical and comparable information to estimate necessary information.
Ratios used to assess performance of a company or asset.
(current asset -inventories)/ current liabilities
ROA ( Return on assets)
Net Income/ average total assets
ROE ( Return on Equity)
Net Income/ Average Equity
Gross Profit Margin %
Operating profit Margin %
Net Profit Margin %
Net Income/ Sales
Debt to Asset Ratio
Total debt/ total assets
Interest Coverage (or times interest earned, TIE)
EBIT/ Interest Expense
Basic EPS (Earnings per share)
(Net Income - Preferred Stock Dividends)/ Weighted Average common stock shares outstanding